IMO, it's in your interest to obey the State+City regulations. 

If you’re thinking about making that second home an STR in Truckee specifically, the Town of Truckee has recently adopted much stricter regulations on STRs so it will be important for you to make sure you can cover all costs of the home without relying on short term rental income.

Most of these cities appear to have regulations.

In today's economic environment, we have an inverted yield curve and inflation at 9% - so neither are none-factors by any means. 

May only be for a week or 2.Right now we are in a tight insurance environment. 

Will the Bed and Breakfast license allow me to run the whole building with the short-term rental business model or this may be seen by the regulators as an avoidance of the short-term regulations and create issues?

The support is insane, they have people and systems in place for experienced and new agents alike to work in a positive upbring environment, not to mention the support and training from top producers that are always in the office.

This is a business, you will be a business owner, there are a load of state landlord tenant regulations for you to learn before you even think of buying a property.Many will suggest you jump in with both feet.

The more you can control a seemingly uncontrollable environment, the more you will thrive in business and financially.

But to each is own,As far as a LLC is concerned i would open the LLC in that state since that state has their own laws and regulations.